SARFAESI Enforcement Flowchart (Descriptive)

SARFAESI Enforcement Flowchart (Descriptive)

 Loan becomes NPA (90+ days overdue)

        ↓

Bank issues 60-day notice under Section 13(2)

        ↓

Borrower may respond or repay

        ↓

No repayment? → Bank takes action under Section 13(4):

     • Take possession of asset

     • Appoint manager

     • Take over business (if applicable)

     • Sell asset via public auction

        ↓

Borrower may appeal to DRT (within 45 days of possession)

        ↓

DRT decides on the validity of the action

        ↓

If DRT decision is adverse → Appeal to DRAT